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Total 27 questions
Exam Code: L3M1                Update: Oct 16, 2025
Exam Name: Procurement and Supply Environments

CIPS Procurement and Supply Environments L3M1 Exam Dumps: Updated Questions & Answers (October 2025)

Question # 1

Which one of the following initiates the procurement process inside the buying organisation, calling for action by the procurement professionals?

A.

Request for quotation

B.

Invoice

C.

Specification

D.

Requisition

Question # 2

The total variety of life on Earth’ is CIPS’ definition of:

A.

Depletion of renewables

B.

Biodiversity

C.

The environment

D.

Corporate Social Responsibility

Question # 3

The Kyoto Agreement is about:

A.

Shipping freight rates

B.

Climate change

C.

Whale protection

D.

Fishing rights

Question # 4

A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a --------- clause:

A.

Retention

B.

Redemption

C.

Intention

D.

Retainer

Question # 5

The idea / practice that some users / internal customers will spend organisational funds without in-volving procurement professionals when required to do so by organisational rules, is called:

A.

Off balance sheet procurement

B.

Nonconformist procurement

C.

Merchandise buying

D.

Maverick buying

Question # 6

Measurement of an organisation’s carbon footprint uses which gas as a standard measure?

A.

CO

B.

CO2

C.

H2O

D.

CO3

Question # 7

Which of the following is least risky from the buyer’s viewpoint?

A.

Payment on delivery

B.

Payment of 50% at time of order; with balance to be paid 90 days after delivery

C.

Payment in full at time of order

D.

Payment 60 days after delivery

Question # 8

‘The social responsibility of business is profit maximisation’ - focusing on returns to shareholders.

This is a famous business philosophy - in contrast to a philosophy of Corporate Social Responsibility as expounded by CIPS.

Which economic and management thinker famously promoted this view?

A.

John Milton

B.

Milton Friedman

C.

John Maynard Keynes

D.

Milton Keynes

Question # 9

Because of the need for frequent or semi-frequent uses of competition, public sector buyers are less likely to find themselves in a close partnership arrangement with a supplierthan private sector buy-ers.True or false?

A.

False

B.

True

Question # 10

A market situation where there is a small number of large suppliers is called:

A.

Oligopoly

B.

Monopoly

C.

Perfect competition

D.

Monopsony

Page: 1 / 3
Total 27 questions

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